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Business Mathematics: Submitted By: Darlene Angela D. Palac

This document contains solutions to word problems involving basic concepts of interest and ordinary annuities. It includes 5 interest rate problems where the interest, principal, time or rate is given to solve for the unknown. It also includes 4 ordinary annuity problems where the payment, time, interest rate or compounding period is given to calculate the future or present value. All problems use the appropriate formulas and show the step-by-step work to arrive at the final answers.

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Alissa May
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29 views5 pages

Business Mathematics: Submitted By: Darlene Angela D. Palac

This document contains solutions to word problems involving basic concepts of interest and ordinary annuities. It includes 5 interest rate problems where the interest, principal, time or rate is given to solve for the unknown. It also includes 4 ordinary annuity problems where the payment, time, interest rate or compounding period is given to calculate the future or present value. All problems use the appropriate formulas and show the step-by-step work to arrive at the final answers.

Uploaded by

Alissa May
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BUSINESS

MATHEMATICS
WRITTEN WORK
Submitted by: Darlene Angela D. Palac
TVL-HEC 11

WW1_subquarterC
Word Problems

A. Basic Concepts of Interest


PROBLEM NUMBER 1

GIVEN:

P= 125,000 php
t= 11 months

r= 3% - 0.03

FORMULA:

I= Prt

I=?

Final answer: 3,437.5 is the interest that Jae needs to pay.

PROBLEM NUMBER 3
P= 8,000 php

i= 8,180 php

t= 6 months – 6/ 12 or 0.5

r=?

FORMULA:

I= Prt

Final answer: 2.05% is the interest rate applied to Maria’s credit cooperative.

PROBLEM NUMBER 5

P= 5,000 php t= 9 years FORMULA: F= P (1 + r/m) ^mt

i= 4% or 0.04 m= 1

Final answer: 7,116.56 is the money in the account after 9 years.

B. ORDINARY ANNUITIES
PROBLEM NUMBER 1

R= 850 php t= 4 yrs.

r= 15%- 0.15 i= r/m= 0.15/12= 0.0125 FORMULA: F= R (1 + i) ^n -1/i


m= 12 n= 48

Final answer: 55,444.13 is the amount Roselyn will save.

PROBLEM NUMBER 2

R= 6,800 php m= 4

t= 7 years n= 12(4) = 48

r= 0.10 i= r/m= 0.10/4= 0.025 FORMULA: F= r (1 + i) ^n-1/i

Final answer: 944,939.66 is the amount of annuity of 10% compounded quarterly.

PROBLEM NUMBER 4
R= 6,800 php m= 4

t= 7 years i= 0.06/4= 0.015

r= 0.06 n= 28 FORMULA: F= r (1 + i) ^n-1/i

Final answer: 154,541.67 is the present value on July 7.

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